A strong 2022 despite slower Q4 due to global economic uncertainty
Truecaller, the leading global platform for verifying contacts and blocking unwanted communication, reports a growth in net sales of 13 percent combined with an adjusted EBITDA margin of 30.6 percent in the fourth quarter of 2022.
“Our first year as a listed company developed beyond expectations. Despite the prevailing global uncertainty, we continued to grow our business and exceeded our financial targets for the year, increasing net sales by 57 percent to SEK 1,772.9 (1,128,9) million. Adjusted EBITDA amounted to SEK 717.2 (472.5) million, with an EBITDA margin of 40.5 (41.9) percent. The cash flow from current operations before tax payments amounted to SEK 764.5 (385.6) million and at the end of the year, we had just over SEK 1.7 billion available for investments.
In the fourth quarter, we continued to grow our user base, consumers, and business customers alike. Average monthly active users increased by 38 million during the year to 338 million, while our portfolio of business customers grew from 1,000 to approximately 1,900 enterprises.
We continue to grow our share of iPhone users; iOS adoption has increased notably, with the number of daily active iOS users growing by more than 80 percent since the launch of our brand-new iPhone app at the end of August 2022.
During the fourth quarter, Truecaller was the fourteenth most downloaded app globally. We continue to be one of the most loved apps in India—in 2022, we were the second most used app in India in the 18-24 age group. We are also proud to have reached an all-time high in our Net Promoter Score in India, ending the quarter at an NPS of 52 (48).
Towards the end of 2022, we gradually entered a more challenging macroeconomic phase. After the third quarter, we expressed that we were observing increased caution by advertisers regarding their marketing investments, and that this likely could lead to muted demand. We saw this materialize in a slowdown in demand during the latter part of the fourth quarter, a period when seasonal effects would typically result in higher spending. Global macroeconomic uncertainty also resulted in reduced smartphone sales around the world, which has, to an extent, impacted our user growth. While we expect this weaker sentiment to persist at least through the first half of 2023, our overall focus is to continue to build a world-class product for our users and business customers, deliver good profitability throughout the economic downturn, and at the same time ensure that we stand even stronger when demand recovers", says Alan Mamedi, CEO of Truecaller.
October-December 2022 (Q4)
Comparative figures refer to October-December 2021.
● Net sales increased by 13 percent to SEK 444.1m (392.2) compared to the same quarter last year.
● Adjusted EBITDA amounted to SEK 135.9m (196.2), corresponding to an adjusted EBITDA margin of 30.6 (50.0) percent. Excluding costs for incentive programs adjusted EBITDA would have been SEK 145.7m (198.4), equivalent to an adjusted EBITDA-margin of 32.8 (50.6) percent.
● Profit after tax of SEK 85.5m (138.3).
● Basic earnings per share were SEK 0.23 (0.38) and diluted earnings per share were SEK 0.23 (0.37).
● Profit for the quarter was not affected by any items affecting comparability, but such items reduced profit for Q4 2021 by SEK -20.8m. The items affecting comparability in 2021 comprised preparations for the IPO of SEK -18.7m and synthetic options of SEK -2.1m.
● The number of monthly active users (MAU) increased by 13 percent to around 338.3 million (299.9).
● Sales growth was 11 percent in India, 12 percent in the Middle East and Africa and 25 percent in the rest of the world.
January-December 2022
Comparative figures refer to January-December 2021.
● Net sales increased by 57 percent to SEK 1772.9m (1128.9) compared to the same period last year.
● Adjusted EBITDA amounted to SEK 717.2m (472.5), corresponding to an adjusted EBITDA margin of 40.5 (419.5) percent. Excluding costs for incentive programs adjusted EBITDA would have been SEK 747.3m (475.4), equivalent to an adjusted EBITDA-margin of 42.2 (42.1) percent.
● Profit after tax of SEK 535.2m (258.3).
● Basic earnings per share were SEK 1.43 (1.01) and diluted earnings per share were SEK 1.43 (0.72).
● Profit for the quarter was not affected by any items affecting comparability, but such items reduced profit for the same period in 2021 by SEK -127.4m. The items affecting comparability in 2021 comprised preparations for the IPO of SEK -48.7m and synthetic options of SEK -78.7m.
● Sales growth was 68 percent in India, 29 percent in the Middle East and Africa and 34 percent in the rest of the world.
Presentation of the report
Alan Mamedi, CEO and Odd Bolin, CFO presents the report and answers questions in a webcast and conference call today at 13.00 CET. The presentation will be held in English.
Follow the presentation live:
To listen to the presentation by phone, please call:
SE: +46850516386
UK: +442031984884
US: +14123176300
Pincode: 2864386#
For more information, please contact:
Odd Bolin, CFO
Andreas Frid, Head of IR & Communication
+46 705 29 08 00
andreas.frid@truecaller.com
This information is information that Truecaller is obliged to make public pursuant to the EU Market Abuse Regulation 596/2014. The information was submitted for publication, through the agency of the contact persons set out above, at the time stated by the Company’s news distributor, Cision, at the publication of this press release.
About Truecaller:
Truecaller (TRUE B) is the leading global platform for verifying contacts and blocking unwanted communication. We enable safe and relevant conversations between people and make it efficient for businesses to connect with consumers. Fraud and unwanted communication are endemic to digital economies, especially in emerging markets. We are on a mission to build trust in communication. Truecaller is an essential part of everyday communication for more than 338 million active users, with more than a billion downloads since launch and around 50 billion unwanted calls identified and blocked in 2021. Headquartered in Stockholm, since 2009, we are a co-founder-led, entrepreneurial company, with a highly experienced management team. Truecaller has been listed on Nasdaq Stockholm since 8 October 2021. For more information, please visit corporate.truecaller.com
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